You are a senior auditor and have been assigned to test the impairment calculations of Machinery for Beetow AG, an industrial manufacturer based in Germany. Beetow maintains a listing on the NY Stock Exchange in the U.S. The following information was taken from the fixed asset records of Beetow as of December 31, 2020:

• CARRYING VALUE 100,000
• SELLING PRICE 85,000
• COST OF DISPOSAL 3,000
• EXPECTED FUTURE CASH FLOWS 75,000
• PRESENT VALUE OF EXPECTED FUTURE CASH FLOWS 63,000

Required: Answer each of the following. Show work.

1. Using IAS 36, what is the amount, if any, of the Impairment Loss for 2020? 2. Under U.S. GAAP, what is the amount, if any, of the Impairment Loss for 2020? (Assume that the present value of expected future cash flows also closely approximates fair value). 3. In 2021, assume that the economy strengthens and the value of the asset rises significantly. Briefly discuss the impairment accounting implications regarding this asset in 2021 under IFRS and US GAAP